Baidu Hit With U.S. Class Action Over AI Business Claims

Rosen Law Firm has filed a class action lawsuit against Baidu on behalf of investors who purchased the company's securities between November 18, 2025 and August 17, 2026. The lawsuit alleges that Baidu overstated its AI business's ability to offset declines in its traditional online marketing operations.

The complaint claims Baidu's core online marketing revenue dropped 17.6% year-over-year in the third quarter of 2025, while the company assured investors that its AI-driven business would effectively hedge against the slowdown. The plaintiffs argue these statements were materially misleading and lacked a reasonable basis.

The case was filed in the U.S. District Court for the Southern District of New York. After Baidu reported fourth-quarter earnings on February 26, 2026, its American depositary shares fell 5.65%. On August 18, following second-quarter results showing AI-driven business revenue down 8% sequentially and growth slowing from 49% to 25% year-over-year, with AI cloud infrastructure revenue down 17% sequentially, Baidu's U.S.-listed shares tumbled 12.73%. The lead plaintiff is described as a "funeral home" company, and the proposed class is estimated to include hundreds or thousands of members.